Investing in All of America Act of 2025
Officially: “Investing in All of America Act of 2025” Read the full text
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1Short title
This section would let the Act be called the "Investing in All of America Act of 2025."
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1. Short title This Act may be cited as the Investing in All of America Act of 2025 .
2Small business investment company maximum leverage exclusion
This section would change how small business investment companies (SBICs) licensed under the Small Business Investment Act of 1958 calculate maximum leverage, meaning the limit on how much they can have outstanding in borrowed funds backed by the program.
Part (a) would amend the definition of "private capital" in section 103(9) of the Act. It would remove a requirement that one category of qualifying funds, described in subclause (I) of the existing list, have been established before October 1, 1987, so that date restriction would no longer apply. It would expand another category, subclause (II), which already covers certain pension plans, so that a foundation, endowment, or trust of a college or university would also qualify. It would make a related punctuation change to a third category, subclause (III), and a conforming punctuation change to a list in subparagraph (A). It would then add a new rule providing that "private capital" does not include any funds a company receives, directly or indirectly, from a federal, state, or local government or any government agency or instrumentality, except for the funds described in the three categories above (subclauses (I) through (III) of subparagraph (B)(iii)). This new rule would apply specifically when the Administrator decides whether to approve a company's request for leverage.
Part (b) would amend section 303(b)(2) of the Act, which sets leverage limits for these companies. It would change a limit number in subparagraph (A)(i) from 300 to 200. It would also rewrite the leverage exclusion in subparagraph (C), which lets certain investments be left out of the leverage calculation. As rewritten, and except as limited by the prospective-applicability rule described below, when calculating the outstanding leverage of a company or companies for purposes of subparagraphs (A) and (B), amounts invested by the company or companies would be excluded from that calculation if invested in any of the following: a small business concern located in a low-income geographic area (as defined in section 351 of the Act) or in a rural area (as defined in section 343(a)(13) of the Agricultural Act of 1961); a small business concern operating primarily in a covered technology category (as defined in section 149(e) of title 10 of the United States Code); or a small manufacturer (as defined in section 501(e)(6) of the Act). The rewrite also strikes the word "equity" from the clause, so the exclusion would no longer be limited to investments described as equity. It also extends the exclusion so that it can apply when more than one company is involved together, not just a single company, and so that it counts toward both of the leverage limits in subparagraphs (A) and (B), not just subparagraph (A) as before.
The amount any company or companies could exclude under this provision would be capped: it could not exceed the lesser of 50 percent of the company's or companies' private capital or $125,000,000, and companies would still have to observe the overall leverage limit in subparagraph (A)(i) and any leverage determination ratio issued under section 301(c). Only investments a licensee makes after this clause is enacted would qualify for the exclusion.
The section would also require the Administrator to adjust the dollar amounts described in subparagraphs (A) and (B) for inflation. On the date of enactment, the Administrator would adjust the dollar amount in subparagraph (B) by the percentage increase in the Consumer Price Index (all items, United States city average) from December 18, 2015 to the enactment date, and would adjust the dollar amount in subparagraph (A) by the percentage increase in that index from June 21, 2018 to the enactment date. Starting one year after enactment, and every year after that, the Administrator would adjust both dollar amounts by the percentage increase in that index over the preceding one-year period. This annual adjustment requirement would not apply to a small business investment company authorized to issue accrual debentures, as defined in section 107.50 of title 13 of the Code of Federal Regulations.
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2. Small business investment company maximum leverage exclusion (a) Definitions Section 103(9) of the Small Business Investment Act of 1958 ( 15 U.S.C. 662(9) ) is amended— (1) in subparagraph (A)(ii), by striking and at the end; (2) in subparagraph (B)(iii)— (A) in subclause (I), by striking established prior to October 1, 1987 ; (B) in subclause (II)— (i) by striking or and inserting , ; and (ii) by inserting , or a foundation, endowment, or trust of a college or university after pension plan ; and (C) in subclause (III), by striking the semicolon at the end and inserting ; and ; and (3) by adding at the end the following new subparagraph: (C) does not include any funds obtained directly or indirectly from any Federal, State or local government or any government agency or instrumentality, except for funds described in subclauses (I) through (III) of subparagraph (B)(iii), for the purpose of approval by the Administrator of any request for leverage. . (b) Maximum leverage exclusion Section 303(b)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 683(b)(2) ) is amended— (1) in subparagraph (A)(i), by striking 300 and inserting 200 ; (2) in subparagraph (C)— (A) in the heading— (i) by inserting or rural after low-income ; and (ii) by inserting , critical technology areas, or small manufacturers after geographic areas ; (B) in clause (i)— (i) by striking (i) In calculating and inserting the following: (i) In general Except as provided in clause (iii), in calculating ; (ii) by inserting or companies after of a company ; (iii) by striking subparagraph (A) and inserting subparagraphs (A) and (B) ; (iv) by striking equity ; and (v) by striking the company in a smaller enterprise and all that follows and inserting the following: the company or companies in— (I) a small business concern located in a low-income geographic area (as defined in section 351 of this title) or in a rural area (as defined in section 343(a)(13) of the Agricultural Act of 1961 ( 7 U.S.C. 1991(a)(13) )); (II) a small business concern operating primarily in a covered technology category (as defined in section 149(e) of title 10, United States Code); or (III) a small manufacturer (as defined in section 501(e)(6) of this Act). ; and (C) by amending clause (ii) to read as follows: (ii) Limitation While maintaining the limitation of subparagraph (A)(i) and consistent with a leverage determination ratio issued pursuant to section 301(c), the aggregate amount excluded for a company or companies under clause (i) from the calculation of the outstanding leverage such company or companies for the purposes of subparagraphs (A) and (B) may not exceed the lesser of 50 percent of the private capital of such company or companies or $125,000,000 ; and (D) by amending clause (iii) to read as follows: (iii) Prospective applicability An investment by a licensee is eligible for exclusion from the calculation of outstanding leverage under clause (i) only if such investment is made by such licensee after the date of enactment of this clause. ; and (3) by adding at the end the following new subparagraphs: (E) Annual adjustment Except as provided in subparagraph (F), the Administrator shall adjust the dollar amounts described in subparagraphs (A) and (B)— (i) on the date of the enactment of this subparagraph, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the period— (I) beginning on December 18, 2015, and ending on the date of the enactment of this subparagraph, with respect to a dollar amount under subparagraph (B); and (II) beginning on June 21, 2018, and ending on the date of the enactment of this subparagraph, with respect to a dollar amount under subparagraph (A); and (ii) on the date that is one year after the date of the enactment of this subparagraph, and annually thereafter, by a percentage equal to the percentage (if any) by which the Consumer Price Index (all items; United States city average), as published by the Bureau of Labor Statistics, increased during the one-year period preceding the date of the adjustment under this clause. (F) Exclusion Subparagraph (E) shall not apply with respect to a small business investment company authorized to issue accrual debentures (as defined in section 107.50 of title 13, Code of Federal Regulations). .
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In the House.